# Approval of Resolution Plan -  Sheltrex Developers Private Limited

> NCLT judgment dated 2024-07-16. Citation: TCN-2024-NCLT-00991. The case involves two applications, IA(IBC)/1729(CHE)/2023 and IA(IBC)/2189(CHE)/2023, filed in…

- **Court:** NCLT
- **Order date:** 16 Jul 2024
- **Citation:** TCN-2024-NCLT-00991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-sheltrex-developers-private-limited-12c0c090

## Summary

### Background

The case involves two applications, IA(IBC)/1729(CHE)/2023 and IA(IBC)/2189(CHE)/2023, filed in relation to the Corporate Insolvency Resolution Process (CIRP) of Sheltrex Developers Private Limited. The CIRP was initiated on 10.12.2019. The first application was filed by the Resolution Professional (RP) seeking approval of the resolution plans for two projects of the Corporate Debtor: one in Coimbatore and another in Chennai. The second application was filed by Religare Finvest Limited, a dissenting financial creditor, seeking rejection of the resolution plans.

## Facts

Sheltrex Developers Private Limited underwent CIRP initiated on 2019-12-10. The company had two projects, one in Coimbatore and another in Chennai. The CoC approved separate resolution plans for each project with 96.66% voting share. BMC Brass LLP was the resolution applicant for the Coimbatore project, and Chennai Sheltrex Homebuyers Welfare Association (CSHBA) was the resolution applicant for the Chennai project. Religare Finvest Limited, a dissenting financial creditor with a claim of Rs.3,84,51,260/-, objected to the Chennai project's resolution plan, which proposed a settlement of only Rs.88,000/-. Religare Finvest had a secured loan of Rs.10 crore to the Corporate Debtor, of which Rs.9.39 crore had been repaid. The Chennai project involved 8.87 acres of land,

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## Issues and analysis

### Issue 1: Whether the resolution plans for the Coimbatore and Chennai projects comply with the provisions of …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in approving

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**Reasoning:** The Tribunal relied on several Supreme Court judgments, including K. Sashidhar v. Indian

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**Interpretation:** The IBC grants significant autonomy to the CoC in the resolution process, and

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**Application:** The Tribunal found that the resolution plans met the requirements of Section

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** N. Ku…
- **Respondents:** Sheltrex Developer…; M/s BMC Bra…

## Timeline

- **2019-12-10 — CIRP Init…**: Corporate Debtor was…
- **2019-12-14 — Public Annou…**: Public announcement to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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